Toyland Products is considering producing toy action figures and sandbox toys. The products require different specialized machines, each costing $1.2 million. Each machine has a five-year life and zero residual value. The two products have different patterns of predicted net cash inflows: E: (Click the icon to view the data.) Calculate the sandbox toy project's payback period. If the sandbox toy project had a residual value of $175,000, would the payback period change? Explain and recalculate if necessary. Does this investment pass Toyland's payback period screening rule? i Data Table Calculate the sandbox toy project's payback period. Annual Net Cash Inflows First, enter the formula, then calculate the payback period. (Enter amounts in dollars, not millions. Round your answer to two decimal pla Full years + Amt. to complete recovery in next year / Projected net cash inflow in next year ) = Payback + ) - D years Year Toy action Sandbox toy figure project project 317,750 $ 510,000 317,750 370,000 317,750 330,000 317,750 260,000 317,750 20,000 4 5. ......... Enter any number in the edit fields and then click Check Answer. $ 1,588,750 $ 1,490,000 Total 3 parts remaining Clear All Toyland will consider making capital investments only if the payback period of the project is less than 3.5 years and the ARR exceeds 8%